TWFG, Inc.

Good morning. My name is Franz, and I'll be your conference operator today. At this time, I would like to welcome everyone to the TWFG fourth quarter 2025 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star one on your telephone keypad. If you would like to withdraw your question, please press star one again. This call is being recorded and will be available for replay on the company's website. Before we begin, let me remind you that today's discussion may contain forward-looking statements and actual results may differ materially from those discussed. For more information regarding forward-looking statements, please refer to the company's press releases and SEC filings. Also on today's call, our speakers will reference certain non-GAAP financial measures, which we believe will provide useful information for the investors. The company has posted reconciliations for the non-GAAP financial measures discussed during this call into tables accompanying the company's earning press release located on the Investors section of the company's website at www.twfg.com. It is now my pleasure to introduce Mr. Gordy Bunch, founder, chairman, and CEO of TWFG.

Sir, the floor is yours. Thank you, Operator, and good morning, everyone.

Thank you for joining us today to discuss DWFG's fourth quarter and full year 2025 results. Joining me on the call is Janice Zwinge, our Chief Financial Officer. After my remarks, Janice will walk through our financial performance in more detail, and then we'll open up the call for questions. For full year 2025 results, I'd like to start by thanking our employees, agents, carrier partners, board, shareholders, and clients. 2025 was a transformational year for TWFG as we successfully embarked on year two as a public company, and none of it would have been possible without the dedication and execution of our teams across the country. For full year 2025, total revenue increased, 21.3% to 247.1 million, driven by a combination of double-digit organic growth, strong performances across both our retail and MGA platforms, and a disciplined execution on accretive acquisitions. Organic revenue for the year was 11.6%, reflecting sustained momentum in new business production, a healthy retention, and the continued expansion of our distribution footprint. that enhance our platform and carrier relationships, positions within personal lines remain constructive, supporting continued new business growth and stable retention across our core markets. Throughout 2025, we continue to expand our national footprint through a mix of recruiting, tuck-in transactions, and accretive acquisitions. Importantly, we remain disciplined in our approach. Early in 2026, TWSG has entered into a definitive agreement to acquire the Lofton Wells Insurance Agency. That will become a corporate location in Memphis, Tennessee on March 1st. This new corporate location will add additional scale to our existing Tennessee operations and provides us with strength in a region we intend to continue growing into. TWFG General Agency has also entered into a definitive agreement to acquire Asset Protection Insurance Associates, a Texas-based MGA specializing in providing comprehensive insurance solutions for property owners and real estate investors throughout the United States. The Commercial Lines National MGA Specialty Program provides TWFG General Agency with access to additional distribution partners for our existing proprietary programs, as well as adds a high quality management team in which we can create additional proprietary programs with. As we evaluate additional M&A opportunities, our focus remains on acquiring high quality culturally aligned targets that enhance our platform and carrier relationships. As always, organic growth remains our foundation with M&A serving as a complimentary growth lever. Before turning the call over to Janice, I would like to share our perspective on artificial intelligence's impact on our industry and TWFG in particular. As AI has been an area we've been investing in for some time as a tool to accelerate agent productivity in their efforts to best serve our clients and their complex insurance needs. The market reacted to a February 2026 launch of AI-powered insurance comparison tools within consumer-facing chatbot platforms. Tools designed primarily to quote standardized personal lines products such as model line auto. This product by nature has been viewed as commoditized, a low-advice transaction that has been subject to direct channel competition for over 20 years. We believe there is an important distinction between monoline lower limit auto clientele and those needing advice for higher limits, bundling with homeowners, and needing umbrella coverages. In contrast to the direct channel, TWFG's independent agent network specializes in providing tailored multi-line coverage solutions across personal, commercial, and specialty lines. Precisely the categories where human expertise, relationship with clients, carrier relationships, and professional judgment are most consequential and most difficult to replicate. PWSG agents have relationships with the clients they serve and the communities they live in. Our agents sponsor Little League, coach soccer, attend PTO meetings, are part of faith-based communities, volunteer with numerous charities, serve as elected officials, and are physically present for their customers. That physical connection is important when our clients endure significant losses from hurricanes, floods, tornadoes, wildfires, water damage, accidents, litigation, cyber attacks, theft, business interruption, and loss of life. Many of these larger catastrophes become a shared experience as being in the community impacted by a hurricane or wildfire means our agents have suffered similar losses. and are feeling and dealing with the same issues their customers are experiencing. That shared life experience is not easily disintermediated for those with complex insurance and relationship needs. Our clients own homes, small businesses, large businesses, operate nonprofits, and have layers of insurance needs where a trusted advisor is required to navigate the nuances of coverages and their unique exposures. DWSG's exclusive and independent agent models are purpose-built for complexity. The company's agents serve as trusted advisors who navigate multi-carrier markets, customize coverage programs, and advocate for clients at the point of sale and during a claim. Functions that demand contextual knowledge, professional accountability, and carrier relationships developed over decades. Rather than representing a displacement threat, AI tooling is increasingly being deployed by independent agents as a productivity accelerator, enabling faster quoting, enhanced communication, and more efficient account management, consistent with TWFG's own technology strategy. TWFG's technology strategy has been one of our competitive advantages. innovative technologies internally as they appear, or to quickly integrate with third-party vendors as needed. We recently made a series of senior leadership appointments specifically to accelerate our technology and underwriting platforms. Our new chief technology officer focuses on AI strategy, cloud architecture, and core platform modernizations. Our new chief underwriting officer has decades of experience in insurance technology and product development. CWFG employs 44 technology-related positions from software engineers, developers, quality assurance, business analysts, database engineers, and infrastructure. This workforce is receiving help from AI coding assistant, Claude, that makes each software engineer increasingly more productive. AI is a force multiplier for our initiatives. Excluding our corporate sales office employees, our technology teams represent 32% of our corporate employee base. TWSG is much more of a technology company than many may appreciate. We are positioned to be a net beneficiary of AI's continued evolution in insurance distribution. Leveraging AI to make our agents more productive, our platforms more capable, and our clients better served. while the human expertise, community presence, client relationships, and professional judgment that define the TWFG models remains precisely what no algorithm can replicate. TWFG's competitive mode starts with our proprietary software and deepens with our organization's diversification and business mix, omni-channel distribution models, proprietary programs, and 25 years of proprietary data. Our retail distribution is highly preferred, focusing on clients that own homes and businesses as our core clientele. The recent commentary is not the first time when the market has questioned the ongoing role of the independent agent. In 2013, McKinsey sparked a similar distribution debate when they published Agents of the Future, the Evolution of Property and Casualty Insurance Distribution, and more specifically, the chapter titled The End of an Era for the local insurance agent. The prediction was the demise of the independent agents, with most expected to be out of business within five to 10 years if they failed to adopt new technology. Instead, the independent agent channel grew in total numbers of agencies, increased their total P&C market share from 57% to 61.5% since 2013, controlled 87.2% of all U.S. Commercial Alliance premiums in 25, grew their homeowners market share from 30% to 39% between 2013 and 2025, and also increased their auto market share from 30% to 34% since 2013. Today, all major insurance carriers operate directly to consumers and through independent agent models. AI entering the direct channel is not new, given comparative shopping without the need for human interaction has existed for the past 20 years. Property and casualty is a $1 trillion addressable market, evenly split between personal and commercial lines, and we see significant runway to grow our share. I want to close with a few final thoughts on the AI opportunity ahead. We are embracing deploying AI across our platform and underwriting agent tools and back office workflows, and we will continue to partner with best-in-class third parties while building our own proprietary AI capabilities. With that, I'll turn it over to Janice to walk through the financials in more detail.